Backyard storage sheds are exceptionally convenient for homeowners lacking space for storing things like lawn equipment, tools, and more. But does a backyard storage shed improve a home’s value?

Backyard Sheds Can Improve Home Value

If you’ve always wanted a backyard shed to house your tools and other outdoor equipment, it would not only be a convenient addition to your property but a valuable one. A backyard storage shed does improve a home’s value, but how much value it adds will depend on numerous factors, including the quality of the build and the structure’s function.

Most appraisers will tell homeowners that a backyard shed can add about one to two percent to a home’s property value, depending on various factors.

Most Valuable Functions for a Backyard Shed

One of the most important things to consider before building a backyard storage shed is how you’ll use it, as this can affect how much value it adds to the property. A typical tool shed that’s simple and only for storing equipment, supplies, and tools will typically add one percent of value to the entire property.

If the backyard shed is more for entertainment and comfort purposes—like a she shed or a man cave—its added value could increase by a percentage point or two. The most significant way to increase a property’s value with a shed is to turn it into living quarters or a small guest house, which can add as much as $10,000 or more to a property.

The Costs of Adding a Shed to Your Property

Homeowners will want to weigh the costs of building a backyard storage shed against the expected value gain to determine if it’s worthwhile. The costs of adding a backyard shed depend on whether you’re building it yourself or contracting the labor and materials out.

The typical quote contractors will give for a small, simple backyard storage shed is around $3,000, although you will pay slightly less if you decide to buy the materials and build it yourself. If you’re building something more significant, like a small guest house, it’ll likely cost closer to $10,000 or more.

Maximizing the Value of Your New Shed

Whether you’re building a simple tool shed for your lawn mower or a more complex structure to serve as a guest house, there are a few ways to maximize the value added to your property. First, you’ll want to set it on a foundation—without a foundation, the shed will only be considered an accessory by appraisers and not count toward the home’s value.

Second, you’ll want the shed’s aesthetic to match the home’s design so they fit together and the shed doesn’t stick out like a sore thumb. Finally, you’ll want to invest in quality, sturdy materials instead of the cheapest options you can find to ensure the shed lasts for as long as possible.